From Adviser Guide: Independent vs Restricted
Q: What does restricted mean?
Restricted covers all firms – except those offering basic advice - that do not meet the requirements for being independent.
Due to this broad spectrum of propositions, Andrew Power, lead Retail Distribution Review partner at Deloitte, said the FSA has required firms to explain in writing (and orally where non face-to-face) the nature of this restriction.
He said: “This includes an explanation about whether the advice is limited to retail investment products from a single company, a single group of companies or a limited number of companies.”
Restricted advice is defined by the FSA as a personal recommendation to a retail client in relation to a retail investment product which is not independent advice; or basic advice.
More in this guide
- Q: What impact does my status have on how I charge clients?
- Q: Can I be both independent and restricted?
- Q: What are the pros of being independent post 2012?
- Q: What do I have to do to be independent post 2012?
- Q: What are the cons of being independent post 2012?
- Guide to Independent versus Restricted